Cardica Signs Distribution Agreement for MicroCutter in Japan

REDWOOD CITY, Calif., Sept. 8, 2011 /PRNewswire/ -- Cardica,
Inc. (Nasdaq:
CRDC[1]
) today announced that it has signed a distribution agreement with
Century Medical, the company's distribution partner for its
PAS-Port® Proximal Anastomosis System in Japan, for Cardica's
planned MicroCutter product line in Japan. Century Medical provided
Cardica with a $4 million loan commitment in exchange for the
distribution rights.

Under the terms of a secured note purchase agreement, Century
has agreed to loan Cardica an aggregate of up to $4 million at a 5%
annual interest rate, with principal due five years after the first
draw by Cardica under the agreement, subject to certain conditions.
Century's obligation to provide the loan to Cardica is subject to
MicroCutter development milestones that Cardica expects to achieve
within the next several months. In return for the loan commitment,
Cardica granted Century distribution rights to Cardica's planned
MicroCutter product line in Japan. Century will be responsible for
securing regulatory approval from the Ministry of Health in Japan.
After approval for marketing in Japan, Cardica would sell
MicroCutter units to Century, who would then sell the MicroCutter
devices to their customers in Japan.

"We believe the MicroCutter product line addresses many of the
limitations of conventional laparoscopic surgical staplers," said
Mr. Akira Hoshino, president and chief executive officer of Century
Medical. "We believe that Japan will be an ideal market for these
innovative devices and look forward to working with Cardica in this
significant market opportunity."

"Century has been a tremendous partner for our PAS-Port system
in Japan, and with their experience in the surgical stapling
market, we believe they will be an ideal partner for our
MicroCutter devices as well," stated Bernard A. Hausen, M.D.,
Ph.D., president and chief executive